Author/Authors :
İLGÜN, M. Fatih Erciyes Üniversitesi - İİBF - Maliye Bölümü, Turkey
Title Of Article :
THE BASES OF EXPANSIONARY FISCAL CONTRACTION HYPOTHESIS AND AN APPLICATION ON TURKISH ECONOMY
Abstract :
An important issue in the design of fiscal policy is the relationship between government and private consumption. Expansionary Fiscal Contraction hypothesis suggests that fiscal contractions can be expansionary because of their effects on expectations of future disposable income and future fiscal policy. In this paper, hypothesis in question is tested for Turkey using quarterly data from 1987 to 2009 with ARDL approach. Empirical findings indicate that government consumption expenditures have the expected Keynesian effects on private consumption in both short and long term.
NaturalLanguageKeyword :
Expansionary Fiscal Contraction , ARDL Bounds Test
JournalTitle :
Erciyes University Journal Of Economics and Administrative Sciences
